If Canada Has Negative Net Exports, Which of the Following

question 220

Multiple Choice

If Canada has negative net exports, which of the following must be true? (Assume that the capital account is zero and net transfers are zero.)

• A)The balance on the financial account must equal the balance on the current account.
• B)Net foreign investment must be negative as well.
• C)Domestic private saving must be less than net foreign investment.
• D)Domestic public saving must be less than net foreign investment.
• E)Domestic public savings must be greater than domestic private savings.

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Definitions:

Average Fixed Cost Curve

A graphical representation showing how the average fixed cost per unit changes as the quantity of output produced changes.

Minimum Point

The minimum point refers to the lowest value of a function, often found in mathematical optimization and related fields.

Marginal Cost

The rise in overall expenses associated with the manufacturing of an extra unit of a good or service.

Average Cost

The total cost of production divided by the number of units produced, a measure of the cost per unit.